Future of Music Coalition Defends Consent Decrees

WASHINGTON, DC—In official comments filed with the U.S. Department of Justice Antitrust Division, Future of Music Coalition argues that the consent decrees which currently govern ASCAP and BMI, the nation’s two leading performance rights organizations (PROs), serve an important purpose for songwriters and independent publishers, along with small and noncommercial broadcasters.

The filing is in response to a request for public comments on competitive concerns that arise from the licensing of musical works by Performance Rights Organizations, as part of the DOJ’s review of existing consent decrees.

The following statement can be attributed to Casey Rae, VP for Policy & Education:

Future of Music Coalition supports equitable payment for songwriters and composers across the board, and we think that more can be done to ensure that money paid out better reflects the contributions of these creators. However, we know firsthand that consent decrees and the blanket licensing system they enable have clear benefits, particularly to indie publishers and songwriters. Given the rampant ownership consolidation among major music publishers, it is more important than ever to maintain these benefits.

Under the current rules, songwriters are paid a guaranteed 50 percent share of royalties. That money goes to them directly, instead of through publishers. Furthermore, the terms are transparent, rather than hidden in non-disclosure agreements between the biggest companies. This longstanding system is at risk because three major publishers think they can make more money by withdrawing their digital rights from the PROs and forcing direct deals. But any change that potentially sacrifices transparency, direct payment to songwriters and fair splits provided by PROs under blanket licenses is a cause for concern.

Most would agree that US copyright law must be brought up to speed with technological developments to ensure that creators get their fair share. But fairness needs to be defined as what works best for the full diversity of artists, and not just the bottom lines of Sony/ATV, Warner-Chapell and Universal Music Publishing. On the road to broader reform, the consent decrees should be preserved, and any proposed modifications must contain transparency obligations, preserve fair and direct payment to songwriters and not disadvantage independent publishers, new market entrants and noncommercial broadcasters.

About Future of Music Coalition

Future of Music Coalition is a national non-profit education, research and advocacy organization that seeks a bright future for creators and listeners. FMC works towards this goal through continuous interaction with its primary constituency — musicians — and in collaboration with other creator/public interest groups. More